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Frontier Group Holdings has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Frontier Group Holdings Inc displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Frontier Group Holdings did not have earnings to cover the interest expense.
Frontier Group Holdings's debt to revenue ratio for the quarter that ended in Jun. 2026 was 1.02.
As of today, Frontier Group Holdings's Altman Z-Score is 0.30.
Frontier Group Holdings (NAS:ULCC) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Frontier Group Holdings has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Frontier Group Holdings Financial Strength Related Terms
ULCC vs JBLU, RJET, ALGT: Financial Strength Comparison
For the Airlines subindustry, Frontier Group Holdings's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Frontier Group Holdings Financial Strength vs Transportation Industry
For the Transportation industry and Industrials sector, Frontier Group Holdings's Financial Strength distribution charts can be found below:
* The bar in red indicates where Frontier Group Holdings's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Frontier Group Holdings has a Z-score of 0.30, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.3 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Frontier Group Holdings (ULCC) has a Financial Strength of 3 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Frontier Group Holdings and its competitors. This is near median its historical median of 3.00. Over the past decade, Frontier Group Holdings' Financial Strength has ranged from 2.00 to 5.00.
Is Frontier Group Holdings' Financial Strength too high?
Frontier Group Holdings' current Financial Strength of 3 is near median its 10-year median of 3.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 5.00. Overall, Frontier Group Holdings has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Frontier Group Holdings' Financial Strength compare to JBLU and RJET?
Frontier Group Holdings' Financial Strength of 3 can be compared against companies in the Transportation industry. Historically, Frontier Group Holdings' own Financial Strength has ranged from 2.00 to 5.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Transportation company?
A good Financial Strength depends on the Transportation industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Frontier Group Holdings and its competitors. Frontier Group Holdings's current Financial Strength is 3, which is near median its own 10-year median of 3.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frontier Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Frontier Group Holdings (ULCC) is currently considered Fairly Valued. The stock's GF Value™ is $6.01, compared to a current price of $5.83 — trading 3% below its estimated fair value. The current Financial Strength is 3, which is near median its 10-year median of 3.00. Frontier Group Holdings' overall GF Score™ is 78/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Frontier Group Holdings (ULCC), the current Financial Strength is 3 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Frontier Group Holdings (ULCC) Overvalued in 2026?
Based on GuruFocus' analysis, Frontier Group Holdings stock appears to be undervalued.
The current stock price of $5.83 is trading 3% below its estimated GF Value™ of $6.01.
GuruFocus considers Frontier Group Holdings to be Fairly Valued.
Key valuation signals for ULCC:
Financial Strength: 3 (near median its 10-year median of 3.00)
GF Value™: $6.01 vs. price of $5.83 (3% below fair value)
No single metric tells the full story. See the ULCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Frontier Group Holdings Inc is an ultra-low-cost carrier whose business is focused on Low Fares Done Right. The company owns a fleet of 120 Airbus single-aisle aircraft, consisting of 13 A320ceos, 82 A320neos, 21 A321ceos, and 4 A321neos. The use of these aircraft, their seating configuration, weight-saving tactics, and baggage process have all contributed to the ability to continue to be the fuel-efficient of all the U.S. The Company is managed as a single business unit that provides air transportation for passengers. The majority of revenue is from Domestic flight follow by International.
78GF Score
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